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Wood-Right Furniture Company

Summary: Wood-rite furniture employees have worked for a very long time under the standard compensation plan where they were all paid hourly wage but not the same amount. Secondly, employees were given each one of them a ham at Christmas, a turkey at Thanksgiving and bonuses on good performance. All the employees were treated well by the company owner. Roger Wood the company owner retired due to illness and he sold the company to another one by the name Relax Recliners. Wood-rite Company in its production section it majored on quality while Relax focused more on costs control.

Once Relax Recliners had acquired Wood-rite Company they began to change the work plan which left the wood-rite employees in a confusion and they began to question how the new plan will lead to success. Some of them even got worried and told Rich that they do not want any of them to lose their jobs. The company assured the employees that each one of them will keep their hourly wages and if the standard productivity plan hits its goals then each will get a bonus paid twice a year. The productivity standards were supposed to be covered by an external expert as per Rich who is the plant foreman. The discussions do not end because Rich cannot answer questions from the angry employees.